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Closing Bell With Maria Bartiromo

News/Business. Maria Bartiromo. Analysis of the day's winners and losers in the stock market. New.

NETWORK

DURATION
01:00:00

RATING

SCANNED IN
San Francisco, CA, USA

SOURCE
Comcast Cable

TUNER
Virtual Ch. 58 (CNBC)

VIDEO CODEC
mpeg2video

AUDIO CODEC
ac3

PIXEL WIDTH
528

PIXEL HEIGHT
480

TOPIC FREQUENCY

Us 11, Europe 7, Larry Fink 7, Blackrock 4, S&p 3, Ben Bernanke 3, Hp 3, Romney 3, Cisco 3, America 3, U.s. 3, Asia 3, Washington 2, North America 2, Hertz 2, United States 2, John 2, Meg Whitman 2, China 2, Amazon 2,
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  CNBC    Closing Bell With Maria Bartiromo    News/Business. Maria Bartiromo. Analysis of the  
   day's winners and losers in the stock market. New.  

    October 4, 2012
    4:00 - 5:00pm EDT  

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week. that is the first hour of "closing bell." stay tuned for marimaria's excle interview with larry fink of blackrock coming up right now. i'll see you tomorrow. and it is 4:00 on wall street. do you know where your money is? hi, everybody. welcome back to the "closing bell." i'm maria bartiromo. today coming to you from the trading floor of blackrock, the largest asset manager on the planet. the firm here managing more money than the federal reserve. coming up on the program, my exclusive interview with the chairman and ceo of blackrock, larry fink. we'll talk about how he's allocating money these it days and what he's seeing around the world. larry fink joining us coming up. an interview you can't afford to miss. meanwhile, let's look at how we're settling out at the close tonight. a pretty good day on wall street on the heels of the debate last night, commentary coming from mario draghi.
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the market held on to a double-digit move, even though it's off the best levels of the afternoon. still closing with a gain. as you can see the numbers here, the dow jones industrial average up more than 75 points on the session. 81 points higher at 13,576 at the close tonight. nasdaq picking up 14 points. the s&p 500 higher by 10.5 points. rally mode as the dow posting the largest gain in about three weeks today. is this a romney rally following that debate last night or more so on the heels of commentary out of europe? top strategists will be weighing in on what was behind today's moves. some on the street are speculating that the rally has to do with the strong showing by governor mitt romney last night in the first presidential debate of the 2012 election. let's get to courtney reagan. she's breaking down the stocks today that moved or could have been moved in one direction or another as a result of that. over to you. >> thank you, maria. mitt romney did need to revis
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revitalize his campaign. it looks like he did it last night. wall street took some notice today. coal stocks, one of the big winners in today's trading after romney made this comment to president obama. >> by the way, i like coal. i'm going to make sure we can continue to burn clean coal. people in the coal industry feel like it's getting crushed by your policies. i want to get america and north america energy independent so we can create those jobs. >> if you're bullish on coal, you're going to like this. take a look at how we performed today in the sector. arch coal up almost 8%. alpha natural up almost 7%. utility stocks also higher. wells fargo saying this is a sector that could do well under a romney administration. we have con ed up about 1%. on the flip side, hospital stocks didn't do so well. a romney win doesn't bode as well for obamacare, and hence big hospital stocks fell. you can see here one of the
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biggest losers in the session. it was a good start for mitt romney, but it is still early. there are two more presidential and one vice presidential debate to go as the campaign heads into the final month before the election. maria, back to you. >> all right, court. thanks so much. so what the rally today really in response to that positive showing by governor romney, or is there something else at work here? joining us right now to talk about it. good to see you all. thanks so much for joining us. michael, what do you think was behind today's moves? >> i think it was really from the european union. i don't think it was so much a romney bounce. i think the you're poen union, just like the federal reserve, has now explicitly stated again they're going to put a floor under risk assets. they're going to put a floor under the capital markets. i think that's what's
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stimulating equities higher. i think that's important to keep in mind. all of the investors piling into fixed income assets, and we are getting more conservative given the rally we've seen, they have to understand that the old expression "don't fight the fed" still applies. not only do we have the fed, we have the bank of japan, china central bank, and the europeans that are going to continue inject adrenaline into economies. >> sandy, is there any reason to believe all of this buying of equities is just what michael said, the central banks of the world and really not based on fundamenta fundamentals, or is this old news at this point that we're going see a contraction in third quarter earnings as these numbers come out in the next couple weeks? >> i don't even know that people are buying equity. we've had about $8 billion that have come out of equities in the last two weeks and $6.3 billion that thhave come out of bonds. the stocks continue to work higher on that. you want to be positioned well. you want to buy good companies, good growth companies at
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reasonable prices and stick with that over the long term. >> you make a great point, sandy. we are, in fact, seeing outflows consistently. what's moving this market? >> i think it has to do with the election and things like that. look at last five years. i was just looking at numbers ending september over the five years. the s&p's done 1% annualized. bonds are up almost 5.8% annualized. i believe in reversion to the mean. i think stocks are going to have their day. i think that's what's coming. i think the market will work well over the next several years. you saw the minutes today. looks like we're going to have an accommodative fed. >> i want to talk about fundamentals here. where are you on this? you want to be buying or selling? >> i think over the long term, meaning once we get into '13, the equity markets will be good. in here, we're due for a correction. our economy has slowed down and quantitative easing really can't provide the equity markets and
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help draw them higher. i think the fundamentals are going to have a correction and maybe the high cash flow stocks will be taken to high single-digit levels. >> it's amazing what has happened in some of these large, global economies. we've been hearing preannouncements and guiding of earnings lower. of course, hewlett-packard one of the most notable recently. i want to get your take on what meg whitman said today in "squawk on the street" this morning. she answered some questions, as we have seen so much selling going on in hewlett. down 50% in market value in the last year. listen to meg whitman this morning on cnbc. >> i'm confident 2013 will be the bottom of the turn around. then you can look forward to good growth in 2013 and 2014 as those products kick in and the i
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think -- investments we're making in i.t. and other things. i think 2014 will be quite a bright year for hp. >> michael, did she convince you? stay away? >> i don't want to buy value quite yet. i will tell you the things she's addressing are really going back and adjusting what two previous ceos have done at hp. mark herd obviously was very much a cost-focused, less rnd-focused ceo. i think meg has a lot of credibility here. she's right to say it's not going to happen this year, not going happen next year. honestly, maria, i wouldn't be touching hp right new. i think there's way too much uncertainty. they don't even have wireless devices. wireless is where all the growth is. hp really, really needs to get their momentum back, and it's going to take time to see that evidence. >> all right. we will continue to look at this story. rick santelli, what's going on today as money as come into equities? >> well, i think our guest spoke
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earlier and said he thought it was the ecb. i contend why didn't the ibex go up? i'm not saying the rally is going to last, but there's very little doubt that anyone that looked at a chart last night and look how our equity markets diverged from the european equity markets. even after the press conference, they were pretty much sideways. in terms of mean reversion, mean reversion's got people in trouble. it's called fat tails. when they explode, mean reversion rubber bands snap. >> all right. we'll leave it there. thanks, everybody. appreciate your time tonight. we are watching a market that certainly continues with momentum here. we'll have more on hewlett-packard's struggles. what it's going to take to turn this company around when i speak to carly fiorina. we're live today from blackrock's trading floor in new york city. we have a lot more ahead on this special action-packed edition of
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the "closing bell." coming up, blackrock's chairman and ceo weighs in on everything from the markets to the upcoming election to why his firm was built for these economic times. it's an interview you can't afford to miss. plus, numbers game. will a bad jobs report tomorrow discredit everything the fed has done to stimulate the economy? and branching out. amazon getting into commercial lending. is this another sign that their retail profit margins are feeling squeezed? that's coming up on the "closing bell." ...at the best schools in the world... ...you see they all have something very interesting in common. they have teachers... ...with a deeper knowledge of their subjects. as a result, their students achieve at a higher level. let's develop more stars in education. let's invest in our teachers... ...so they can inspire our students.
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where can back. we want to go right to john with breaking news on cisco. >> cisco -- excluz use me. cisco promoting two skpexecutiv to the president title. rob lloyd will now include engineering as part of his role. gary moore's role stays the same, but he becomes co-president. this is important because john chambers said he's going to step back within two to four years. back to you. >> all right. thank you so much, john. he runs the world's largest, in
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terms of assets manager, at more than $3.5 trillion. he currently oversees more money than the federal reserve. joining me now is larry fink. good to see you. >> hi, marimaria. how are you? >> good. thank you for joining us. you have been on this campaign for a while to try to explain to people that you're losing money when you have money in fixed income. take money out of there and put it into equities. yet, we're seeing outflows. >> in equitieequities. >> yeah. >> i should be clear, you're not losing money if you're in fixed income that has higher yields. if you're earning 60 basis points after inflation and you're losing money. so what we believe people have to start focusing on, and i believe it's a crisis, that if you don't start putting money away that's earning more than 60 basis points but earning closer to 5, 6%, you're going to have a
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hard time meeting your needs when you retire. so if you're a 35-year-old person with a desire to retire at 65, you only have 30 years to build that nest egg. and today with longevity becoming a bigger issue and living beyond 90, you need to build even a bigger nest egg than people are suggesting. so we're just telling people that you have to think about keeping money in bonds or in cash right now, it's costing you a huge amount of money. people talk about, like, financial repression. you hear those words. well, you are repressing savers. so what we were trying to alert people is you don't have time to wait. you have to start focusing on investing for the long term. and that's what we are trying to have, this idea germinate and have people start acting. you need to be in the market.
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you need to have investments that can survive over many years. from my view, as i said to you last year in october on your show, i would be 100% in equities. obviously if you were, you would have made 23%. now, most people can't do that, but what i'm trying to inspire people to start focusing on the need for retirement, the need for higher yielding returns. >> i want to find out some specific strategies in terms of doing that. first, let's talk about the economic backdrop because here we have this market rallying, yet the fundamentals seem to be quite anemic. what's your take on where we are now in terms of the economy? >> we're about a year away from the u.s. economy short-term problemsrelated to the fiscal cliff. we're about a year away from a full rebound in american housing. we started off in 2007 with 8
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million unsold homes. we need about 1 million to 1.5 million new homes every year because of family formation, because of replacements and for immigration. over the last five years, we have now brought down that inventory to a more manageable level. in states like texas, you're starting to see rising housing prices. even in counties in california where you had a huge boom in housing. so housing is becoming a better economic engine. presently, we're only building about 500,000 new homes. in a year from now, i expect us to go back to that million new home level, and that's going to create new jobs. second of all, our banks are in great shape. they're in much better shape than the european banks, much better shape than the asian banks. i believe they have a capacity to lend more when there's sufficient demand. three, you know, we have been blessed with incredible amounts
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of energy. we're the third largest producer of oil in the world today. oil production in the united states is up 8%. we have all the natural gas. so this is going to be a huge job creator. a few weeks ago i was in germany and saw one of the ceos of the largest german factory. they're going to close a factory in one of their cities and opening a factory in charlotte. the reason why, our natural gas is now about $3.40 btu. in europe, it's over $11. in asia, it's over $18. because our natural gas prices are so much cheaper here, this factory is going to be built using the natural gas to build plastics. this ceo, this was a big multicap, large multinational german company who said there's going to be a renaissance in u.s. manufacturing because of our energy situation. >> well, this came up last night during the debate with mitt
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romney talking about one of the ways to create jobs is through energy in this country. >> it's happening. by the private sector right now in the natural gas area, it's happening. also in oil. so it's already happening. it's just going to start accelerating. now manufacturers are going to take the natural gas and create downstream products like plastics and other items. >> i know you don't want to talk politics, larry. i want to get your take on really what was behind this strength today. a lot of people saying it was a romney rally. we want to run a sound bite of romney last night and the president, not to get you to react to it, but to put some perspective in what we saw today in stocks. listen to this. >> my plan has five basic parts. one, get us energy independent. north america energy independent. that creates about 4 million jobs. number two, open up more trade, particularly in latin america. crack down on china if and when they cheat. number three, make sure our people have the skills they need
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to succeed and the best schools in the world. we're far away from that now. number four, get us to a balanced budget. number five, champion small business. >> well, there you go in terms of mitt romney coming out with five points in terms of an economic plan. do you think this is resonating with folks out there? the issues that are important in terms of dictating their vote, the economy. >> no question. the economy for so many families in america have been very disappointing. many people are still looking for jobs. much of this is structural unemployment, as we've created more efficiencies in our factories, which means fewer jobs. so we have -- you know, we're still struggling with an 8-plus percent unemployment rate. that has to be part of the debate as to how -- what direction we go in the future. so it is my view, whoever is president in 2014 -- and i've been public about it.
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i am a democrat and voting for the president. >> you mean 2013? >> no, whoever is president in 2014, because my views of housing, my views in energy and my views on the banking system, i think we're going to have a rising economy. so i don't believe -- i think it's going to be -- we're going to have this success in our economy subject to working out our fiscal cliff, which we could spend a lot of time talking on. but i do believe the foundation for a stronger america is already here. >> larry, this firm has been incredibly successful. this is larry fink's blackrock. you have led this company, founded this company and have an enormous amount of credibility. there's word and buzz out there that if the president wins re-election, you want the treasury secretary job. if you leave this post, shareholders want to know, do you want that job? >> i think i'll be surprising the world how long i stay at blackrock. you know, this is my home.
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i have an incredible, incredible post here. i love the -- what this company has done. i think we have a lot more opportunity in the future. >> if president obama asked you to serve the country, what are you going to say? >> i'll be speechless at first. >> let me move on. let me ask you about blackrock. etfs have been enormously successful. this is the way to invest for transparency, tax efficiency, and yet it seems like vanguard keeps undercutting everyone on price. it s there a price war going on? >> not really because the market is evolving. first of all, fees are just one component of etfs. this is a stock. some etfs have much wider bid. that should be a component of how you analyze an etf cost. also, most etfs are indexed products. no one is focusing on what is
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the tracking error. i could tell you our i-shares etfs have far better tracking than our competitors. we've done a very good job. some of the products where there's a difference in fees, we have tracking -- a better tracking, as much as 40, 50 basis points. so i don't believe -- i think as etf become more kmodtized by nature, you're going to see a decline in prices. but the reality is that, you know, worldwide, we're the leader in etfs. we're the leader in europe. we're the leader in asia. we're the leader in south america. we still remain to be the largest leader in the united states. vanguard is a great firm. they're actually a big client of blackrocks. we do work with them. they're wonderful in what they do in the etf area. i'm very proud of what we have done in i-shares. i believe we will continue to be the dominant leader in etfs.
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>> because blackrock is so big with $3.6 trillion under management, does it get tougher to get as much exposure as you can to other managers? some managers just can't have so much exposure because they're already working with you, and they've got the exposure already. that's where we saw the outflows. you told us the last time the outflows are done. >> the outflows are done. >> that was only because managers can't have an overexposure to one firm, right? >> some of our investors have guidelines that they may be limited to 10 or 20% of one manager. >> so i guess my question is, does it get tougher for blackrock to grow at such large numbers today? >> there's always a growing. if you're talking about growth in revenues, you're going to -- i think we have huge opportunities. on aum, it's something i don't focus on as much because at this time, over 70% of our assets are
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index and cash-like items. if we can navigate from our client, who we only have one relationship with. let's say it's an index fund. if we can work with that client and two or three different relationships, and yet we're at threshold of 10%, i'd be glad to reduce some of the index products for alternatives, etfs, and some of our active fundamental products. but the answer to your question, clearly, i think you're going to see aum growth for blackrock in the future plus revenue growth. >> aum on top of $3.5 trillion is pretty impressive. how worried are you about the fiscal cliff? not necessarily just for blackrock, but the economy. >> the fiscal cliff is probably the biggest problem facing us. we are already seeing a slow down in the u.s. economy. i know many ceos who are sitting with large sums of cash, probably could invest in a new
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sfa factory or another store. most certainly they could be making more hires, yet they're refusing, they're holding back. many small businesses are sitting on enormous sums of cash, and they are in the investing because they're frightened of what does this all mean. so this outcome, our fiscal cliff, how it's going to be designed, is going to be enormous. if they do a great job, no different than what president draghi did at the ecb when he announced his program that really caused a relief rally in europe. if we see our government doing the same thing, having a very comprehensive response to the fiscal cliff, something like simpson-bowles, 4-plus, $5 trillion over a period of time, you'll see a huge rally. on the other hand, if we see this dragging out, if they have to have it delayed, it doesn't happen after the lame duck session, after the election, it
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drags on to february, drags on to march. we will have a recession in the first quarter. we'll have negative gdp in the first quarter. despite my bullishness out a year, we could have some real volatility. i would suggest if we have that real volatility, it's a great buying opportunity for everybody out there. but in my conversation with many of the men and women in washington, i'm trying to be as large of an alarmist as i can to make sure we focus on the fiscal cliff and we have a resolution as fast as possible. >> absolutely. and europe, have we seen the worst there? >> europe is a seven-year fix. we have a great plan that the ecb has created, but we also need politicians to agree on it. >> similar problems. >> the dynamic is very rough. the problem is that investors,
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having politics interfering in the markets, we're going to have to learn to live with this. hopefully we, members of the marketplace, can help the politicians navigate this push and pull. we're going to live with this push and pull. i think it's an opportunity to invest during the push and pull. we're not going to be seeing a relaxation in volatility. it's going to be with us and create fear. getting back to our first point, this fear is a short-term period of fear. if you are that 35-year-old, you got to start thinking about what does this mean when you're retiring at 65? how are you going to build that nest egg for the next 30 years? >> all right. we'll leave it there. probably among the most informed managers out there. larry fink, good to have you on the program. >> thank you, maria. >> up next, who knew that red lobster restaurant near you may
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be saving your local shopping sfrer center from shutting down. later, amazon started out selling books. now it's making loans. is this a brilliant move for the bottom line or an admission its retail business model is not working? then -- >> we're trying to meet our maximum employment mandate, so that's the objective. >> ben bernanke. does the fed's credibility go down the drain if tomorrow's jobs number disappoints? we'll discuss the consequences in a few minutes. stick around. with the fidelity stock screener, you can try strategies from independent experts and see what criteria they use. such as a 5% yield on dividend-paying stocks. then you can customize the strategies and narrow down to exactly those stocks you want to follow. i'm mark allen of fidelity investments. the expert strategies feature is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.
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welcome back. retail real estate stalling as more retailers move online, but the industry may have a new savior, restaurants. >> that's right. retail malls are still struggling to come back from the one-two pinch. then, as you said, that continuing move to online shopping. vacancies are coming off their highs of 9.4% to 8.7% in q-3. strip centers are underperforming the large community malls with a higher vacancy rate of 8.10%. what's helping the bigger malls is something very new. restaurants taking up former retail space.
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>> we have seen restaurants and other entertainment venues helping to drive that mall growth. malls have become a gathering place for people. you know, the paneras of this world help that happen. >> as of august, restaurants had signed nearly 16% of retail leases by square foot. that's up from around 10% in 2006. the numbers have been rising year to year. it's just like right behind me here in d.c. this mall lost a lot of stores during the recession. they're remodeling and going in with two more restaurants. plenty more online. >> all right. thanks so much. up next is jeff basos worried about his business model or unlocking a new revenue stream? amazon getting into the business of making loans. next, on jobs watch and under pressure. ben bernanke and fellow
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welcome back. amazon.com in the loan business? yes, it is true. it turns out if you sell goods on amazon, you may qualify to get a loan from amazon. the program is called amazon lending. it launched late last year with the goal of helping sellers access a loan much faster than they may be able to access a loan from a traditional bank or a lender. it might be a smart business and way to leverage its users to make another revenue stream, but some are worried it's a sign amazon cannot make enough with its retail model. we're going to talk about this. stay with us on that.
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. welcome back. we got the big kahuna of economic reports out tomorrow.
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out at 8:30 a.m. eastern. businesses are planning to cut nearly 34,000 workers. they said that last night. up slightly from august. the fed reserve has a lot riding on it since ben bernanke and company were clear all this is aimed at spurring jobs. we'll know that tomorrow. nick schultz is joining me for the american enterprise institute. dean baker disagrees with him. gentlemen, thank you so much for weighing in. hope you tame to play today. nick, you say the fed's previous moves haven't worked out. why? >> look at the jobs number. it's at 15-year low, but businesses aren't hire. we're looking at numbers at 110, 120, maybe. let's say it surprises on the up side. you need to get 250, 300,000 jobs a month for several months in a row for that to be a sign this economy is back. it's not back by any stretch of
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the imagination. >> you don't think that we're actually going to see much job creation. you don't necessarily think we've actually seen anybody move the needle with all the stimulus. >> that's right. i mean, if you look at where the jobs numbers are, you know, we had a slight uptick at the end of 2011, beginning of 2012. started to look good. then we see it drop back down again. again, we're talking some job creation, but for the size of the economy and given the hole that we have been in, this is a terrible labor market. these are really anemic conditions. so it's not to say that q-1, q-2, qe-3 haven't been a necessary si policy response, but they haven't been enough. part of reason is that on the fiscal side, we've just got a mess. we've got a terrible tax system. we have a regulatory problem and all the rest. until we fix that, we're not going to get the jobs picture any better. >> dean, you don't think the economy is that weak. >> i wouldn't say it's great. i agree completely.
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150,000 will take us 15 years o get back to full employment. i think the fed has helped, but it's not enough. i would say the problem is in congress, but i don't think it's a tax story. we had the same tax story for years and had much better growth. realistically, the regulations are hard pressed to tell a story about how it's so horrible. it's very simple. we had a collapse of a huge bubble. there's nothing to replace somewhere in the order of 1.2 trillion in annual demand we lost with the bubble burst. we don't know any magic incantation that will bring about that much new demand. so in the short term, at least, the only way you could do that is with large budget deficit and for better or worse, we're not seeing big enough deficits because everyone in washington's got this deficit hysteria, even though we're paying 1.6% interest on ten-year bonds. >> well, how about some clarity? how come ceo after ceo and
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manager after manager come on this program and tell me the same thing? i'm not going to move. i'm not going to put money into the economy. i'm not going to hire new workers because i have no idea what my tax rates are going to be. >> they want tax cuts. >> no, i think -- >> if you look at their investment -- >> i think they want clarity. >> i look at the data. if you look at investment equipment and softwares, i'm leaving out structures for exactly the reason your previous segment said. there's a huge vacancy in most categories in unresidential real estate because of the prior building boom. if you look at equipment and software investments and share of gdp, we're almost back to the prerecession level. so the fact is generally they actually have been investing in spite of what they're telling you. >> maria, dean's right about one thing. all the stimulus efforts have been too short-term focused. this gets to your clarity point. what ceos and businesses are looking for is long-term certainty that there is structural soundness in the country. you know, you had larry fink on
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earlier who was talking he's an alarmist about fiscal cliff that's coming. he can't even look past two, three, four, five months ahead because he's worried about what's going to happen at end of this year, beginning of next year. there's a lot of businesses doing that. it's a big part of reason you're not seeing the hiring and growth returning and the economy turning the way we need it to. >> anybody expecting good numbers tomorrow? >> well, again, i'd say a little better than the consensus. i expect 150 jobs. that's nothing to celebrate. >> 150,000 jobs. all right. we'll be watching that. gentlemen, thank you very much. appreciate your time and important insights on this topic. we appreciate it. meanwhile, amazon.com in the loan business. really interesting story here. if you sell goods on amazon, you may qualify for a loan. it's called amazon lending. that's the program. it launched last year with the goal of helping its sellers access a loan much faster than they might hafrom a traditional bank or lender. it might be smart business and a
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way to leverage its users, but others are saying it could be amazon can't make enough with its retail model. herman long says this is simply a smart business move. good to see you. nikko, a red flag? >> absolutely. my main concern with this strategy is first of all, amazon is supposed to be a partner with its independent sellers. this says otherwise. >> this doesn't tell you they're not creating a value for folks. they want to make more money. doesn't necessarily mean they're hurting anyone or they're not creating -- providing a value for people who want loans, right? >> good point. right. the point is, if you're charging a high interest rate for that loan, you've got to ask yourself if you're trying to gouge that customer and make their margins a bit smaller or if you're trying to really help them grow their business.
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from my perspective, i think if amazon was so confident in its ability to help its small merchants grow, they'd be able to offer a lower interest rate on those loans than other options. not only just offer that loan faster, but a lower rate of return. >> herman, what do you think? >> i think this is a smart move for amazon. i think it's enabling bigger ecosystem -- it's building out their ecosystem. the third party business for amazon is about 40% of their units. it's one of the fastest growing areas. i think it's a good driver. it's not for every seller. not every seller is qualified to get this. amazon has the color to basically figure out whether you are going to give lending to that customer or not. so it's not for all sellers. >> fair enough, but -- >> what about the idea that amazon might be spreading itself too thin? should shareholders be concerned? >> i think it's a growth trajectory and a growth avenue for amazon. like i said earlier, it's 40% of units today. that's third-party sellers
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selling on amazon. that's growing 60% year over year. that's part of what the company's investing in today in terms of where they're building out their business is these distribution centers now that are not only just for amazon products but it's more for third-party sellers as well. >> well, i think if that was the case -- i guess i don't really agree with the point that this is just one more value added services for merchants. if you look at the industry, other companies like ibm or cisco have zero or very low rate leasing and financing programs to help customers acquire their technology. ultimately they feel that the product they're selling is sound. in the case of amazon, i really would like to see this program really be about helping its merchants gain access to funds to acquire more inventory and sell more products on amazon and not a way to really just get more revenue from its merchants by charging or earning profits from financial services. and, you know, quite frankly, financial services is not a tangible business to retail
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selling. >> so you're worried about the company's ability to expand its profit margin here. >> i am. i guess there's a lot of ways that amazon could be exploring new revenue streams. i think the kindle fire and the content delivery network it's building around that is a great one and very exciting. but a non-bank lending institution seems like a very moderate return on investment in the effort it's putting into it. also, i think, you know, having owned a small business for the last eight years and been a research eaer on this market fo almost 20, what i've found is the most important asset you can have is your relationship with them. if you do anything that would suggest to them that you're not a parter in but that you might be preying upon them to take more money out of their pocket, you're going to have a hard time keeping that relationship sound. >> yeah, and remember all the uproar around walmart and when walmart wanted to also create a bank. great conversation. thank you so much, both of you. we appreciate your time today. see you soon. we'll set you up for tomorrow
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morning next. stick around because there may be a curveball or two heading our way when it comes to the jobs report. back in a moment. ally bank. why they're always there to talk. i love you, james. don't you love me? i'm a robot. i know. i know you're a robot! but there's more in you than just circuits and wires! uhhh. (cries) a machine can't give you what a person can. that's why ally has knowledgeable people there for you, night and day. ally bank. your money needs an ally.
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welcome back. what do you want to watch for tomorrow morning? >> i'm watching the jobs number. >> the market will not trade as well. it is less likely that romney will win. but, i think the rally we had today was based on how well romney did last night and the market does want to go higher under a romney win. >> you think if he wins it is better for the stock market. 1600 is where we are going if romney wins. >> the jobs report for septem r
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september. we are not looking for meaningful improvement with the business trends. we are looking for 85,000 job gains in september. there will be a couple of over rages in the earnings. chris, you are up. last but not least, 30 seconds on the clock. what are you looking for? >> your other guests talked about the others. i'll talk about the international data. should inflation continue to escalate. that may put a lid on the stimulus they are able to do. we have german factory orders
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that are of interest to us. but, frankly, the think we watch most closely are the debt spreads in spain and italy. >> all right. thank you gentlemen. we will bring you all of that tomorrow morning. as well as the data from asia and europe. up next my data on economic patriotism. they can help, but recent research shows... ...nothing transforms schools like investing in advanced teacher education. let's build a strong foundation. let's invest in our teachers so they can inspire our students. let's solve this.
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finally today, my observation, last night the president coined a new term when making his case listen to this. >> are we going to double down on the top down economic policies are do we embrace a new economic patriotispatriotism. >> that is right. somehow the president thinks paying as much as congress is demanding is patriotic. the president also forgets the
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highest earners already pay most of the taxes in this country. the truth is that many of the wealthy would pay more if they thought that it was spent better. case in point. the highest profile of course be ing cilindra. many americans learned last night that taxpayers are subsidizing pbs is that money well spent when we are facing so much debt? saying that the higher taxes on the well this he alone won't
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move the needle and even with that, everyone will need to pay more in taxes. that would be economic patri patriotism. it was a good day on wall treat. the dow jones still up 80 points today. finishing at 13575. and the s&p 500 tonight finishing at 1461 on the standard and poors at 500. thank you to larry fink. i'll see you tomorrow on the closing bell. have a great night. see you tomorrow. >> a